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Open Door Capital: Verified Investor Reviews on Invest Clearly
4.55
Open Door Capital Website
Open Door CapitalOpen Door Capital Overview
Open Door Capital is a privately held real estate investment firm founded by Brandon Turner that specializes in mobile home parks, self-storage facilities and multifamily. Open Door Capital has nearly $1 billion in assets under management (AUM), a portfolio of more than 13,000 units, and has partnered with more than 2,000 investors. Visit odcfund.com/our-offerings to view current opportunities.
Address
Kiehi,
Hawaii
96753
Year Founded
2017
Operates In
Virginia
Florida
Georgia
Mississippi
Texas
Asset Classes
Multifamily
Storage
Mobile Home Parks
Accepted Investors
Accredited
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Open Door Capital Details
highlighted review
Verified Investor
1.00
"Horrible experience as an LP so far"
Invested in the Sunbelt Fund so have nothing good to report with essentially no distributions since investing a few years ago. Seems the operators including Brandon are more interested in marketing new projects instead of making sure existing struggling projects are operating well. Not sure where their preferred returns investors came from but will see if their able to turn the ship around on this fund and at least return our original investment. For all you new investors this is the type of email they presented AS THEY WERE MARKETING NEW FUNDS on social and their websites. In addition, we’ve seen a 20%+ surge in material and labor costs associated with both CapEx and regular unit turns. These multiple compounding factors have dramatically impacted the performance of SDP, causing a significant strain on cash flow and our ability to continue completing our targeted level of interior rehabs to maximize the ROI on our unit turns. Our Options My team and I have been working closely with Disrupt Equity over the past few months on a plan and have now identified what we believe is the best path forward. The good news is that our current loan term doesn’t end until June - September 2025 (depending on the property), so we won’t need to refinance until later next year. Having said that, we're left with a couple of options: Option #1 – sell the asset immediately at the most inopportune time. Accounting for the current headwinds mentioned above, we would estimate a disposition price of around $80M-$84M, translating to a 53-62% loss of original equity. Option #2 – Obtain ~$3M of additional equity to extend the property’s runway and allow for the full execution of our business plan going into a refinance. This would also provide us more time for the markets to adjust and alleviate some of the headwinds mentioned above. Note that this equity is the minimum required to cover our operational shortfalls and business plan to carry us to a refinance. Depending on market conditions at the time of refinance, there is a chance that additional preferred equity may be required for a cash-in refinance. This is wholly dependent on the market in 2025, which we’re hopeful will improve relative to the last couple of years.
Open Door Capital
4.55
Thank you for sharing your feedback. This year, Open Door Capital has launched just one traditional fund, and our equity raised and deployed is projected to be less than ~20% of what we’ve done in previous years as we’ve dedicated our focus toward operations amidst challenging macroeconomic headwinds brought on by the unprecedented run up in interest rates and massive tax/insurance increases. In addition, a significant portion of the capital that we ARE raising this year is going to triage a few structurally challenged deals in our portfolio, including the Sunbelt Diversified Portfolio that you mentioned. Only ~3-5 of our 20+ investment offerings to date are experiencing these type of structural issues due to the unprecedented impact (inflation, interest rates, etc.) from the COVID-19 pandemic. Also our team has grown significantly over the past few years to support the size of our portfolio. We now have a team of more than 100 employees spread across different functions within the company, and we are collectively invested heavily alongside you in every single deal. We’re always here to talk if you have any further questions or need clarification on anything affecting performance. Just reach out to our Investor Relations team and we will set up a call with the appropriate team member to get your questions answered.
Verified Investor
2.00
"Multiple ODC Funds: A Disappointment"
My investments in two ODC funds, marketed as "cash-growth" and "day one cash flow," have been disappointing. Distributions on both funds have been paused for multiple years, directly contradicting their initial stated goals. Although ODC's communication is acceptable, their consistent underperformance relative to even their most conservative projections is a significant concern.
Sutter L.
5.00
"Love Open Door Capital!"
We’ve now invested in three deals with Open Door Capital and couldn’t be happier. The team is exceptional, the deals are solid, and their communication is clear and consistent. Before investing, we spoke with several references and consistently heard glowing feedback about how ODC operates. They’ve proven to be trustworthy and highly transparent. Overall, it’s been a great experience, and we’ve truly enjoyed partnering with ODC.
Zach M.
4.00
"So far, so Good"
Good onboarding. However, initial communication after investment was lacking. I had to reach out to find out some specifics of how the fund was doing in the first few months.
Verified Investor
1.00
"Failing investment"
Terrible operator and totally inept at vetting deals. Founder's completely checked out. Performance re-baselined lower numerous times and still can't meet targets. Cashflow negative and no communication about viable path to save the fund. Expect the investment to fail and go to 0.
